DUBLIN--(BUSINESS WIRE)--The "Germany Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The gift card market in Germany has recorded a CAGR of 12.2% during 2018-2022. According to the report, the gift card industry in the country is expected to grow by 10.8% on annual basis to reach US$ 14,401.2 million in 2023.
The gift card industry in Germany will continue to grow over the forecast period and is expected to record a CAGR of 9.4% during 2023-2027. The gift card market in the country will increase from US$ 12,995.1 million in 2022 to reach US$ 20,628.2 million by 2027.
The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.
The gift cards have gained increasing prominence among consumers in Germany over the last few years. With the payment method gaining widespread adoption, brands have consistently increased their investment in the space and the trend is expected to further continue over the next three to four years.
From grocery retailers to hospitality firms, many players across industry verticals are launching innovative gift card initiatives to leverage the growing popularity among Germans. Furthermore, the growing trend of online shopping is projected to push forward the growth of digital gift cards over physical ones from the short to medium-term perspective. Overall, the publisher maintains a robust growth outlook for the gift card sector in Germany over the next three to four years.
Retailers are planning to launch several gift card initiatives in Germany to lure customers and drive growth
Amid the growing popularity of the gift cards as a payment tool among German consumers, more and more retailers are incorporating the payment solution into their operations and marketing strategies to drive growth. For instance,
In November 2022, Aldi, the German retailer, announced that the firm is looking to update its payment terminals and roll out gift card initiatives to leverage the rising adoption among consumers.
Furthermore, just ahead of the 2022 holiday season in Germany, the retailer also announced a giveaway gift card program. Select customers will receive gift cards at select locations when shopping at Aldi stores in Germany. The firm has launched the program to celebrate the release of more than 1,000 limited-time holiday products at its stores.
The publisher expects the firm to further launch more such gift card promotional campaigns, which will subsequently drive gift card transaction volume and value in the country over the next three to four years.
Germany-based gift card providers are expanding their payment solution to more countries and distribution partners
Globally, the gift cards have become a mainstream payment option, as more and more brands and consumers are using the payment tool to complete their online and offline purchases. To capitalize on this trend, Germany-based firms are expanding their geographical presence by launching their gift card services in more global markets.
In June 2022, epay, the leading payment processing firm, announced the launch of its payment solution Renewal in more countries and has also onboarded new distribution partners. The distribution partners and countries include Harvey Norman in Australia, Etisalat in the United Arab Emirates, and Singtel in Singapore, among others. With Renewal, brands and businesses can convert their digital products into a subscription model and sell them through the global network of retailers operating in collaboration with epay.
From the short to medium-term perspective, the payments firm which also offers gift card services is projected to expand its presence in more global markets. This will further accelerate the growth of the firm over the next three to four years.
Hospitality firms are launching discounted gift card programs to tap into the pent-up travel demand in Germany
The pandemic has had a severe impact on the operations of hospitality firms. However, with travel rebounding and people increasingly spending on their travel activities, hospitality firms are leveraging gift cards to capitalize on the pent-up travel demand in Germany. For instance,
In November 2022, Accor, one of the leading global players in the hospitality sector, announced a discounted gift card program for all of its Accor Live Limitless members. Under the program, the firm is offering members an additional 20% amount when purchasing gift cards. Travelers can use the gift cards over a duration of three years, thereby making them an attractive payment tool, while driving incremental revenue for the firm.
The firm also launched a similar discounted gift card program for travelers in the United Kingdom. However, in the United Kingdom, the gift cards are only eligible for purchases made within a year of buying the gift cards. Such gift card programs are expected to accelerate the growth of the industry as travel is expected to post a strong recovery around the world in 2023.
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Edeka Zentral AG & Co KG
- Schwarz Beteiligungs GmbH
- Aldi Group
- Rewe Group
- Amazon.com Inc
- dm-Drogerie Markt GmbH & Co KG
- Tengelmann Group, The
- Dirk Rossmann KG
- Globus Holding GmbH & Co
- Inter Ikea Systems BV
- H&M Hennes & Mauritz AB
Scope
Total Spend on Gifts in Germany
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in Germany
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in Germany
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Germany
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in Germany
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Germany
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in Germany
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Germany
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in Germany
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in Germany
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/7jp91o
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